Its campaign director Emma Hurst said of the family-run poultry business, whose main farm is located in Mellong in the Hawkesbury: "Over three years we've seen ducks with twisted necks walking in circles unable to eat or drink, dead bodies litter the floor inside the sheds and bug infestations.

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"We alerted animal welfare authorities, the Department of Primary Industries and the Food Authority on many occasions about the cruelty, but it appears the disease and welfare issues are continuing."

A photo of ducklings inside a Tinder Creek shed taken in late 2015.Credit:Animal Liberation

Restaurants that have cut ties with the producer include Icebergs Dining Room and Bar, Red Lantern and Sails on Lavender Bay. Retailers include Harris Farm Markets and Vic's Meat.

Greg Jones, the owner of Tinder Creek, said the business has always done its best to meet animal welfare standards and has only received one infringement notice in its 20-year history - a $1500 fine from the Animal Welfare League in 2013 in relation to euthanasia and general injuries.

He said despite the apparent exodus, the business was thriving and struggling to meet demand. It produces 15,000kg of duck meat each week.

"Every single day birds die and, when you have 60,000 birds, you always have losses," he said.

A photo of a lame duck in a Tinder Creek shed taken in late 2015.Credit:Animal Liberation

"The other birds walk on them, but you can't have someone there for 24 hours pulling out dead birds. In the morning, I admit, it doesn't look good, but that happens on every farm, not just mine."

Following a complaint, officers from the NSW Food Authority, Department of Primary Industries, RSPCA and Local Land Services, inspected the farm on September 4 last year. They did not identify any major welfare issues.

Icebergs Dining Room and Bar is now using duck meat from Thirlmere and Holmbrae.Credit:Quentin Jones

An RSPCA spokeswoman said the organisation has never issued a fine to or prosecuted the producer.

A Food Authority spokesperson said it issued an "improvement notice" in relation to the implementation of "food safety management statements".

A dead duck in one of the sheds at Tinder Creek farm.Credit:Animal Liberation

"The authority undertook a follow up inspection ... to ensure the matters had been addressed," she said.

"As per the requirements of licensing ... the producer is subject to regular and ongoing compliance inspections, now at increased frequency."

Mark Jensen, head chef at Red Lantern.Credit:Christopher Pearce

Despite the lack of prosecutions and penalties, Animal Liberation has successfully driven a wedge between the producer and major stockists. It is in the midst targeting other stockists.

Monty Koludrovic, executive chef at Icebergs Dining Room and Bar in Bondi, swapped duck suppliers last year because of animal welfare concerns.

He now uses Thirlmere and Holmbrae for duck and chicken, and Red Gate Farm for quail.

"I discovered there was some potentially upsetting handling going on at the company from an animal welfare point of view," he said.

"Not necessarily illegal or outside of regulation even but some people I spoke with had doubts in regards to attitude towards the business, which for me is a big thing."

Mark Jensen, head chef at Red Lantern in Darlinghurst, said he stopped using Tinder Duck a couple of years ago because of animal welfare issues.

Vic's Meat, which according to Mr Jones had a relationship with Tinder Creek for 15 years, cut ties in the past year. A spokeswoman said it was because of decreased demand from its business customers.

Mr Jones said that despite appearances, Tinder Creek was thriving. He said Hawkesbury Council had recently approved its application to develop a multi-million dollar abattoir in Tennyson, an hour's drive south of Mellong.

It overcame various hurdles - including protests by Animal Liberation and complaints from owners of neighbouring properties concerned about thesmell of dead ducks each day - to gain the approval.

"We're in the phase of spending millions to build a new duck processing plant," said Mr Jones.

Contrary to Animal Liberation's claims, the ACCC said it has never issued a fine to Tinder Creek. It has however taken action against competitors Game Farm, Luv-a-Duck and Pepe's Ducks for misleading consumers.

Other restaurants that have stopped using Tinder Creek duck meat include Wilhelmina's Liquid and Larder in Balmain, Steel Bar and Grill in the Sydney CBD and Quattro Country Restaurant, according to Animal Liberation.